Regional aviation across the borders is the most weakly developed
mode of transport in the Barents region. The few existing cross-border
flight connections are on the verge of closing down, which would be
detrimental to regional integration including social and business
contacts. Existing cross-border flights are

Luleå-Murmansk

Luleå-Tromsö

For
revitalising the regional flight services a determined collaboration
between the stakeholders in the regional aviation must be launched.

STBR,
phase 1, studied the demand and commercial feasibility of cross-border
air transport in the Barents region. Current difficulties were
identified to stem from uncertain services resulting in low passenger
volumes. STBR II intends to take a practical step forward and use a real
case of a regional air service between either of

Sweden-Finland-Russia/Murmansk or

Luleå-Tromsö.

The
objectives are to identify obstacles to opening of regular flights and
to find ways for establishing the service on a permanent basis. A
working group between aviation administrators, airport officials, flight
operators and tourism agencies is created, which will explore the
following:

How to secure flight connections across the borders, particularly to
and from Russia?

How to eliminate administrative and regulatory obstacles?

As a
last activity, a program of marketing measures, particularly among
travel agencies, will be launched.

One subproject for WP1 has
been launched-"Marketing
support for regional aviation in the Barents region; A practical case of
opening an air route between the Nordic Countries and Russia".

Contractor: Ramboll Finland Oy
JOB Media & reklambyrå AB

Subproject # 1

Marketing support for regional aviation
in the Barents Region; A practical case of opening an air route between
the Nordic Countries and Russia

Project period
Marketing support project: August
2006 – March 2007.Practical marketing measures: Start early on in the project and
run up to the end of 2007.

Description

Regional aviation is the most weakly developed mode of transport in the
Barents Region. Nevertheless, it could possibly become the most
important mode for cross-border passenger travel due to Region’s rapidly
increasing economic activity and long distances. At present, the few
existing cross-border flight connections are commercially weak. If they
will fail, it would be detrimental to regional integration including
social and business contacts. For revitalising the scheduled flight
connections, including taxi and chartered flights, a determined effort
and an intensified collaboration between the stakeholders in the
regional aviation must be established.

STBR I studied the demand and commercial feasibility of cross-border air
transport in the Barents region. The three at that time existing
scheduled flight connections were studied, Tromsø-Murmansk,
Luleå-Rovaniemi-Murmansk and Luleå-Tromsø. Current difficulties were
identified to stem from uncertain services, which have resulted in low
passenger volumes. Lacking marketing and not so convenient booking
procedures are also believed to add to this problem. Only one of the
existing routes Tromsø-Murmansk has had sufficient volumes of passengers
that ensure the route’s long-term viability.

STBR II
intends to take a practical step forward and use the route
Sweden-Finland-Russia (Murmansk) as a case. Nordkalottflyg has opened
the route again in June 2006, at first between Luleå-Murmansk. Earlier
the route was operated by Archangelsk Air AVL (current Aeroflot North).

The
Project will identify and analyse a variety of smaller and larger
measures that comprise typically those that can be considered to help
improve the route’s commercial viability and increase the number of
passengers, such as marketing, schedule harmonising with major airlines,
involvement of tourism operators, improved ground support, and in some
cases also subsidies from national governments including discounts on
airport fees.

In
addition to the specific Luleå-Oulu/Rovaniemi-Murmansk line, a broader
effort to improve the visibility and availability of other forms of
regional air services (charters and taxis) will be studied. The measures
include marketing, but also other supporting functions like flight
booking procedures that should be developed so as to meet today’s market
demands – for example, the consumers have to be able to trust that the
most convenient and economic route choice and service will be suggested
to them when they are making queries concerning flights to/from Barents
destinations.

A
working group between aviation administrators, airport officials, flight
operators and tourism agencies will be created. Together with this group
efforts will be made to eliminate also administrative and regulatory
obstacles that may exist in the Nordic Countries and more particularly
those that affect the flights to/from Northwest Russia.

Strategic objective

Ensure and improve cross-border flight services in the Region, which
means both scheduled flights and chartered/taxi flights.

Project objectives

Identify commercial obstacles of regional aviation, such as low
passenger volumes and availability, and to find ways for shoring up the
current services on a more permanent basis.

Setting
up a support program of marketing measures for the regional
aviation, more particularly for the cross-border route Luleå -
Oulu/Rovaniemi - Murmansk.

Identifying
and planning other support functions to shore up regional aviation
in the Barents Region.

Expected outcome

The testing of a practical case of opening an air route in the
Barents Region increases the understanding of the necessary measures
that ensure and improve regional flight services.

Marketing measures that support the growth of passenger flows over
time.

Other supporting measures that improve the wider and easier
availability of flight services.

A collaborative framework that assists in the elimination of
institutional and legal obstacles between the countries on a
continuous basis.

Optional Project

The
second stage of the Project will be considered mainly based on the
project’s results. The follow-up stage is envisaged to comprise the
implementation of the marketing plan and/or other support functions
resulting from the first stage of the project. The decision of launching
the second stage will be taken when the results are available.

The
first actual marketing activity should start as early as possible,
preferably right at the start of this project. The optional project may
also include short term marketing measures for the cross-border route
Sweden-Russia – provided that such viable ideas are presented in the
work programme. These would have to be measures that could be launched
with little or no delay even at the very start of the project. This
would be to support the build-up of passenger flows instantly and in
that way help secure the continuity of the service.